As global demand for goods surges, the freight and logistics sector faces mounting pressures. In the UK, this vital industry underpins nearly every aspect of daily life, from ensuring supermarket shelves are stocked to enable the smooth operation of manufacturing. However, with the current focus on sustainability, technological advances and the ongoing transition to net zero, the freight and logistics industry is at a crucial crossroads. In June 2022, the UK’s Department for Transport (DfT) released its "Future of Freight" plan, a comprehensive vision for a sustainable, resilient and efficient freight and logistics sector that will support the UK economy for decades.
Here’s what the Future of Freight plan entails and how it aims to make the freight sector greener, more resilient and a driver of economic prosperity—and our thoughts on what FLOX.is is excited to contribute to this vision.
Building a National Freight Network (NFN)
The DfT’s Future of Freight plan prioritises creating a unified National Freight Network (NFN), an ambitious project that integrates the UK’s road, rail, maritime and air freight infrastructure into a cohesive cross-modal network. Currently, each mode of transport operates largely independently, leading to inefficiencies and bottlenecks that ripple through supply chains. By consolidating these modes into a single network, the NFN aims to streamline freight movement, optimise infrastructure usage and reduce costs across the board.
This integration is critical as the sector moves approximately 1.6 billion tonnes of goods within and across the UK annually. The road and rail freight network alone covers over 3,200 miles, and the demand on these routes is only growing as e-commerce and global trade continue to rise. The NFN’s goal is to ensure that these goods can move smoothly across modes, minimising delays and emissions.
FLOX Perspective: At FLOX, we see the NFN as a significant step towards creating a dynamic and adaptable freight sector that can meet rising demands sustainably. We believe that bringing different modes of transport together will allow for smarter real-time decision-making across the network, which is exactly where we see technology playing a critical role. Integrating data from all modes will empower the industry to reduce delays, cut costs and make environmental gains. We’re particularly excited about the potential for advanced analytics to identify synergies between modes, enabling seamless, flexible and optimised movement of freight.
Driving the Transition to Net Zero
Freight transport is one of the UK’s highest greenhouse gas (GHG) emitters, accounting for 16% of transport emissions through heavy goods vehicles (HGVs) alone. The DfT plan sets the goal for the entire freight sector to be net zero by 2050, aligning with broader national targets. Achieving this ambitious goal will require major shifts in technology, fuel and infrastructure.
Road freight in the UK currently accounts for around 29 million tonnes of CO2 emissions annually【4†source】. Additionally, the maritime sector, which handles 95% of the UK's import and export weight, contributes approximately 5% of domestic greenhouse emissions. To address this, the plan proposes the establishment of a Freight Energy Forum, where industry leaders will collaborate on identifying and scaling low-carbon solutions. Initial efforts will explore zero-carbon emission HGVs and expand infrastructure to support electric and hydrogen-powered freight vehicles.
FLOX Perspective: For FLOX, net zero isn’t just a goal—it’s a guiding principle for everything we do. Seeing the government invest in a unified approach to zero-emission technologies gives us confidence that sustainable solutions will become the new standard in freight. We also see great potential in collaborating on the Freight Energy Forum to align innovative technologies like hydrogen and electric power with industry realities. At FLOX, we’re already exploring ways to make our logistics software compatible with these zero-emission modes, allowing customers to factor in emissions reductions as they plan routes and manage fleets. This not only serves the environment but is a valuable branding tool for customers who prioritise sustainability.
Modernising Freight Planning
Efficient freight logistics rely heavily on the planning system, which affects everything from where warehouses and distribution centres are located to how freight moves across local and regional boundaries. Historically, there has been a disconnect between the needs of the freight sector and local planning authorities, often resulting in delays, increased costs and suboptimal outcomes for the industry.
Currently, freight and logistics services contribute £127 billion to the UK economy, yet the disconnect with planning processes has caused delays that cost the sector millions each year. The sector also supports around 200,000 enterprises that depend on smooth logistics. To address these challenges, the DfT’s plan proposes reforms that improve collaboration between industry and local planners. This includes a "call for evidence" initiative that seeks feedback from local authorities and stakeholders to better understand their challenges and needs. These changes aim to reduce barriers to new developments that support freight operations, creating effective solutions and a responsive system for the sector.
FLOX Perspective: As a tech-driven company, we know that better planning leads to better performance. By aligning logistics planning with local and national goals, FLOX sees the opportunity to bring real, localised data to the table, helping planners see the benefits of freight infrastructure projects for the economy and communities. We believe planning reform that integrates real-time predictive insights from logistics software can shorten approval times for key projects and ultimately improve delivery reliability. With data-driven planning, the sector can optimise where and how it grows, minimising impact on communities while still delivering the benefits of better logistics.
Building a Skilled Workforce
The freight sector employs over 2 million people in the UK, but with rapid changes in technology and the ongoing energy transition, new skills are increasingly essential. The industry faces a skills shortage that, if left unaddressed, could limit the sector's growth and adaptability.
Over the last decade, the sector’s workforce needs have expanded by 26%, nearly double the growth rate of the wider economy. Despite this, surveys show that only 24% of the public feels knowledgeable about career opportunities in freight and logistics. One of the Future of Freight plan’s solutions to this challenge is the “Generation Logistics” campaign, a public engagement initiative aimed at attracting a diverse and talented workforce to freight and logistics. Additionally, the DfT is working with industry to reform training programmes, making it easier for workers to gain the necessary skills for emerging roles, such as managing automated systems or operating electric HGVs.
FLOX Perspective: We’re thrilled to see this emphasis on workforce development. At FLOX, we understand that technology is only as good as the people who use it. We believe there is huge potential in training a new generation of logistics experts in emerging technologies like AI, data analytics and zero-emission vehicle operations. We’re committed to partnering with training programmes and offering internships to equip young professionals with the skills they need to thrive. An investment in talent is an investment in the future resilience of the entire sector.
Harnessing Technology and Data
In a rapidly digitising world, freight and logistics must embrace technology to stay competitive and resilient. The DfT has committed £7 million to establish a Freight Innovation Fund, which will support companies developing new technologies and data solutions for the sector. This initiative aims to make better use of real-time data, enabling more efficient routing, load management and operational forecasting.
The government projects that harnessing real-time data solutions could reduce overall supply chain costs by as much as 15%, while lowering emissions by up to 20%. Currently, the sector relies heavily on road freight, which represents 79% of domestic freight movement. A significant portion of the DfT’s technological transformation will focus on creating an interconnected network that can adapt to disruptions, such as extreme weather events or geopolitical tensions. By linking systems across the entire freight network, the sector can achieve greater resilience and flexibility.
FLOX Perspective: Technology and data are at the core of FLOX’s mission to streamline and future-proof logistics. We are excited to see the government recognising the role of tech in freight and logistics. The Freight Innovation Fund is a promising opportunity for companies like FLOX to bring new solutions to market that can help optimise supply chains, lower emissions and enhance visibility for freight operators. We look forward to developing tools that let operators forecast routes with incredible accuracy, factoring in everything from weather patterns to traffic flows, helping them respond dynamically to the unexpected.
A Vision for the Future
The DfT’s Future of Freight plan represents a new chapter for the UK’s freight and logistics sector. By fostering collaboration between government and industry, the plan aims to create a sector that is cost-effective, environmentally responsible and resilient to future disruptions. While the challenges are substantial, the potential benefits—economic growth, a cleaner environment and a stronger global presence—make this investment worthwhile.
At FLOX, we’re ready to help drive this vision forward. Whether it’s through data insights, sustainable technology or workforce development, we see our role as a partner in the journey to a freight sector that is not only robust and efficient but also a beacon of innovation and sustainability in the global economy.
Contact us today to discover how FLOX’s logistics solutions can help you optimise your supply chain management.
Footnotes
- Department for Transport, UK Government Report on Freight Statistics
- Office of Rail and Road, Annual Freight Rail Usage Report
- UK Government, Department for Environment, Food & Rural Affairs (DEFRA)
- Department for Transport, UK Transport Decarbonisation Plan
- International Maritime Organization (IMO) Report on UK Maritime Emissions
- UK Office for National Statistics, Economic Contribution of Freight & Logistics
- Chartered Institute of Logistics and Transport (CILT) UK Survey
- UK Office for National Statistics, Employment Trends in Logistics
- UK Public Attitudes Survey on Careers in Logistics